Alstom Signs a Contract Worth Nearly One Billion Euros to Build a New Power Plant in Estonia

Alstom, a global leader in power generation equipment and services, has signed a €950 million contract with Narva Elektrijaamad AS, a subsidiary of Estonia's state owned utility Eesti Energia, to supply two 300 MW units for a fossil fuel power plant based on Circulating Fluidized Bed (CFB) boiler technology in Estonia. The power plant, located in Narva, will be fuelled with local oil shale. This agreement includes a first unit of 300 MW for an amount of €540 million and an option for a second unit of 300 MW for €410 million, which could be exercised by the customer within the next 18 months.

The new power plant will supply a important part of the country's domestic electricity consumption and ensure Estonia's compliance with the EU LCPD emissions directive by substantially reducing emissions.

Under the terms of the contract, Alstom will design, manufacture, supply, install, test and commission the units. This includes the supply of final fuel handling, CFB boiler, steam turbine, flue gas treatment, automation & control systems and electrical systems for each unit.

Alstom has previously supplied enhanced dust removal systems (electrostatic precipitators) to Eesti Energia and performed three low-pressure (LP) turbine retrofits at the Narva power plants. Alstom is currently supplying new desulphurisation systems for four 200 MW Narva plants and has also a Long Term Service Agreement (LTSA) with Narva since the year 2000.

“This contract illustrates Eesti Energia's sustained trust and confidence in Alstom's technology and expertise in project execution. We are proud to support the modernisation of Estonia's production fleet and to help it attain energy security,” says Patrick Kron, Chairman and CEO of Alstom.

“We chose Alstom as a global leading company for complex EPC projects to deliver its CFB boiler technology to ensure cleaner, and locally-sourced power for our growing customer base”, says Sandor Liive, CEO of Eesti Energia.

About Alstom

Alstom is a global leader in the world of power generation, power transmission and rail infrastructure and sets the benchmark for innovative and environmentally friendly technologies. Alstom builds the fastest train and the highest capacity automated metro in the world, provides turnkey integrated power plant solutions and associated services for a wide variety of energy sources, including hydro, nuclear, gas, coal and wind, and it offers a wide range of solutions for power transmission, with a focus on smart grids. The Group employs 95,000 people in more than 70 countries, and had sales of over €23 billion in 2009/10 (pro forma figures).

About Eesti EnergiaEesti Energia, the national energy company of Estonia owns and operates some 2,000MW of power generation capacity (most of which is oil shale fired) and supplies electricity to some 500,000 customers. Eesti Energia is the largest producer of shale oil and has been engaged in oil shale processing for nearly 100 years. Internationally the company is known as Enefit. www.energia.ee